Bill Summary – FastDemocracy

LB9                                                                                                     LB9
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                                      LEGISLATURE OF NEBRASKA
                                ONE HUNDRED EIGHTH LEGISLATURE
                                       FIRST SPECIAL SESSION
                               LEGISLATIVE BILL 9
       Introduced by Hughes, 24; Brandt, 32; Conrad, 46; Dorn, 30.
       Read first time July 25, 2024
       Committee: Revenue
   A   BILL   FOR    AN     ACT   relating to     school funding;        to amend sections
        79-1005.01, 79-1007.11, 79-1007.18, 79-1016, and 81-12,193, Revised
        Statutes Cumulative Supplement,     2022;        sections    77-3442,    77-6703,
        79-1001, 79-3402, and 79-3406, Revised Statutes Supplement, 2023;
        and section 79-1021, Revised Statutes Supplement, 2023, as amended
        by Laws 2024, LB1284, section 12; to change provisions relating to
        property tax levies for school districts and the Nebraska Property
        Tax Incentive Act;     to add,     change,        and eliminate certain
        calculations under the Tax Equity and Educational Opportunities
        Support Act; to state intent regarding transfers into the Education
        Future Fund;    to authorize school districts to    levy taxes under
        certain circumstances; to change provisions relating to the School
        District Property Tax Limitation Act and the Nebraska
        Transformational Project Fund;    to harmonize provisions;     and to
        repeal the original sections.
   Be it enacted by the people of the State of Nebraska,
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          Section 1. Section 77-3442, Revised Statutes Supplement, 2023, is
   amended to read:
          77-3442 (1) Property tax levies for the support of local governments
   for fiscal years beginning on or after July 1, 1998, shall be limited to
  the amounts set forth in this section except as provided in section
  77-3444.
          (2)(a) Except as provided in subdivisions (2)(b) and (2)(e) of this
   section, school districts and multiple-district school systems may levy a
   maximum levy of:
         (i) Through fiscal year 2024-25, one dollar and five cents per one
  hundred dollars of taxable valuation of property subject to the levy; .
          (ii) For fiscal years 2025-26 and 2026-27, sixty-five cents per one
   hundred dollars of taxable valuation of property subject to the levy;
          (iii) For fiscal years 2027-28 and 2028-29, fifty-five cents per one
   hundred dollars of taxable valuation of property subject to the levy;
         (iv) For fiscal years 2029-30 and 2030-31, forty-five cents per one
  hundred dollars of taxable valuation of property subject to the levy;
          (v) For fiscal years 2031-32 and 2032-33, thirty-five cents per one
   hundred dollars of taxable valuation of property subject to the levy; and
          (vi)   For fiscal year   2033-34   and each fiscal year thereafter,
   twenty-five cents per one hundred dollars of   taxable valuation of
   property subject to the levy.
         (b) For each fiscal year prior to fiscal year 2017-18, learning
   communities may levy a maximum levy for the general fund budgets of
   member school districts of ninety-five cents per one hundred dollars of
   taxable valuation of property subject to the levy. The proceeds from the
   levy pursuant to   this subdivision shall be    distributed pursuant to
   section 79-1073.
         (c) Except as provided in subdivision (2)(e) of this section, for
  each fiscal year prior to fiscal year 2017-18, school districts that are
  members of learning communities may levy for purposes of such districts'
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  general fund budget and special building funds a maximum combined levy of
  the difference of one dollar and five cents on each one hundred dollars
   of taxable property subject to the levy minus the learning community levy
   pursuant to   subdivision    (2)(b)      of this section for such learning
   community.
      (d) Excluded from the limitations in subdivisions (2)(a) and (2)(c)
  of this section are (i) amounts levied to pay for current and future sums
  agreed to be paid by a school district to certificated employees in
   exchange for a voluntary termination of employment occurring prior to
   September 1, 2017, (ii) amounts levied by a school district otherwise at
   the maximum levy pursuant to subdivision (2)(a) of this section to pay
  for current and future qualified voluntary termination incentives for
  certificated teachers pursuant to subsection (3) of section 79-8,142 that
   are not otherwise included in an exclusion pursuant to subdivision (2)(d)
  of this section, (iii) amounts levied by a school district otherwise at
  the maximum levy pursuant to subdivision (2)(a) of this section to pay
  for seventy-five percent of the current and future sums agreed to be paid
  to certificated employees in exchange for a voluntary termination of
  employment occurring between September 1, 2017, and August 31, 2018, as a
   result of    a collective-bargaining agreement in   force and effect on
  September     1,   2017,   that are not otherwise included in    an exclusion
  pursuant to subdivision (2)(d) of this section, (iv) amounts levied by a
  school district otherwise at the maximum levy pursuant to subdivision (2)
  (a) of this section to pay for fifty percent of the current and future
   sums agreed to be paid to certificated employees in exchange for a
   voluntary termination of employment occurring between September 1, 2018,
   and August 31, 2019, as a result of a collective-bargaining agreement in
   force and effect on September 1, 2017, that are not otherwise included in
   an exclusion pursuant to subdivision (2)(d) of this section, (v) amounts
  levied by a school district otherwise at the maximum levy pursuant to
  subdivision (2)(a) of this section to pay for twenty-five percent of the
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  current and future sums agreed to be paid to certificated employees in
   exchange for a voluntary termination of employment occurring between
  September 1, 2019, and August 31, 2020, as a result of a collective-
  bargaining agreement in force and effect on September 1, 2017, that are
  not otherwise included in an exclusion pursuant to subdivision (2)(d) of
  this section, (vi) amounts levied in compliance with sections 79-10,110
  and 79-10,110.02, and (vii) amounts levied to pay for special building
  funds and sinking funds established for projects commenced prior to April
  1, 1996, for construction, expansion, or alteration of school district
   buildings. For purposes of this subsection, commenced means any action
  taken by the school board on the record which commits the board to expend
  district funds in planning, constructing, or carrying out the project.
       (e)    Federal aid school districts may exceed the maximum levy
  prescribed by subdivision (2)(a) or (2)(c) of this section only to the
   extent necessary to qualify to receive federal aid pursuant to Title VIII
  of Public Law 103-382, as such title existed on September 1, 2001. For
  purposes of   this subdivision,    federal aid school district means any
  school district which receives ten percent or more of the revenue for its
  general fund budget from federal government sources pursuant to Title
  VIII of Public Law 103-382, as such title existed on September 1, 2001.
      (f) For each fiscal year, learning communities may levy a maximum
  levy of one-half cent on each one hundred dollars of taxable property
  subject to the levy for elementary learning center facility leases, for
  remodeling of leased elementary learning center facilities, and for up to
  fifty percent of the estimated cost for focus school or program capital
  projects approved by the learning community coordinating council pursuant
  to section 79-2111.
      (g) For each fiscal year, learning communities may levy a maximum
  levy of one and one-half cents on each one hundred dollars of taxable
  property subject to the levy for early childhood education programs for
  children in   poverty,     for elementary learning center employees,      for
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   contracts with other entities or individuals who are not employees of the
   learning community for elementary learning center programs and services,
   and for pilot projects, except that no more than ten percent of such levy
   may be used for elementary learning center employees.
         (3) For each fiscal year through fiscal year 2023-24, community
   college areas may levy the levies provided in subdivisions (2)(a) through
  (c)   of section    85-1517,        in accordance with the provisions of    such
  subdivisions. For fiscal year 2024-25 and each fiscal year thereafter,
  community college areas may levy the levies provided in subdivisions (2)
  (a) and (b) of section 85-1517, in accordance with the provisions of such
  subdivisions. A community college area may exceed the levy provided in
  subdivision (2)(a) of section 85-1517 by the amount necessary to generate
   sufficient revenue as       described in   section     85-1543        or    85-2238.     A
   community college area may exceed the levy provided in subdivision (2)(b)
   of section 85-1517 by the amount necessary to retire general obligation
   bonds assumed by the community college area or issued pursuant to section
  85-1515 according to the terms of such bonds or for any obligation
  pursuant to section 85-1535 entered into prior to January 1, 1997.
         (4)(a) Natural resources districts may levy a maximum levy of four
   and one-half cents per one hundred dollars of     taxable valuation of
   property subject to the levy.
         (b)   Natural resources districts shall also have the power and
   authority to   levy    a tax equal to    the dollar amount by      which their
   restricted funds budgeted to     administer and implement ground water
   management activities and integrated management activities under the
   Nebraska Ground Water Management and Protection Act exceed their
  restricted funds budgeted to     administer and implement ground water
  management activities and integrated management activities for FY2003-04,
  not to exceed one cent on each one hundred dollars of taxable valuation
  annually on all of the taxable property within the district.
        (c) In addition, natural resources districts located in a river
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   basin,     subbasin,     or reach that has been determined to   be fully
   appropriated pursuant to section 46-714 or designated as overappropriated
   pursuant to section 46-713 by the Department of Natural Resources shall
  also have the power and authority to levy a tax equal to the dollar
   amount by   which their restricted funds budgeted to     administer and
   implement ground water management activities and integrated management
   activities under the Nebraska Ground Water Management and Protection Act
   exceed their restricted funds budgeted to administer and implement ground
  water management activities and integrated management activities for
   FY2005-06, not to exceed three cents on each one hundred dollars of
   taxable valuation on all of the taxable property within the district for
   fiscal year 2006-07 and each fiscal year thereafter through fiscal year
   2017-18.
       (5) Any educational service unit authorized to levy a property tax
   pursuant to section 79-1225 may levy a maximum levy of one and one-half
   cents per one hundred dollars of taxable valuation of property subject to
   the levy.
       (6)(a) Incorporated cities and villages which are not within the
   boundaries of a municipal county may levy a maximum levy of forty-five
   cents per one hundred dollars of taxable valuation of property subject to
   the levy plus an additional five cents per one hundred dollars of taxable
   valuation to provide financing for the municipality's share of revenue
   required under an    agreement or     agreements executed pursuant to   the
   Interlocal Cooperation Act or the Joint Public Agency Act. The maximum
   levy shall include amounts levied to pay for sums to support a library
   pursuant to section 51-201, museum pursuant to section 51-501, visiting
   community nurse, home health nurse, or home health agency pursuant to
   section 71-1637, or statue, memorial, or monument pursuant to section
   80-202.
       (b) Incorporated cities and villages which are within the boundaries
   of a municipal county may levy a maximum levy of ninety cents per one
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   hundred dollars of taxable valuation of property subject to the levy. The
   maximum levy shall include amounts paid to a municipal county for county
   services, amounts levied to pay for sums to support a library pursuant to
   section 51-201, a museum pursuant to section 51-501, a visiting community
   nurse, home health nurse, or home health agency pursuant to section
   71-1637, or a statue, memorial, or monument pursuant to section 80-202.
       (7) Sanitary and improvement districts which have been in existence
   for more than five years may levy a maximum levy of forty cents per one
   hundred dollars of taxable valuation of property subject to the levy, and
   sanitary and improvement districts which have been in existence for five
   years or less shall not have a maximum levy. Unconsolidated sanitary and
   improvement districts which have been in existence for more than five
   years and are located in a municipal county may levy a maximum of eighty-
   five cents per hundred dollars of taxable valuation of property subject
   to the levy.
       (8) Counties may levy or authorize a maximum levy of fifty cents per
   one hundred dollars of taxable valuation of property subject to the levy,
   except that five cents per one hundred dollars of taxable valuation of
   property subject to the levy may only be levied to provide financing for
   the county's share of revenue required under an agreement or agreements
  executed pursuant to the Interlocal Cooperation Act or the Joint Public
   Agency Act. The maximum levy shall include amounts levied to pay for sums
  to support a library pursuant to section 51-201 or museum pursuant to
   section 51-501. The county may allocate up to fifteen cents of its
   authority to   other political subdivisions subject to   allocation of
   property tax authority under subsection (1) of section 77-3443 and not
   specifically covered in this section to levy taxes as authorized by law
   which do not collectively exceed fifteen cents per one hundred dollars of
   taxable valuation on any parcel or item of taxable property. The county
   may allocate to one or more other political subdivisions subject to
  allocation of property tax authority by the county under subsection (1)
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   of section 77-3443 some or all of the county's five cents per one hundred
   dollars of valuation authorized for support of an agreement or agreements
   to be levied by the political subdivision for the purpose of supporting
   that political subdivision's share of revenue required under an agreement
   or agreements executed pursuant to the Interlocal Cooperation Act or the
   Joint Public Agency Act. If an allocation by a county would cause another
   county to exceed its levy authority under this section, the second county
   may exceed the levy authority in order to levy the amount allocated.
          (9) Municipal counties may levy or authorize a maximum levy of one
   dollar per one hundred dollars of taxable valuation of property subject
   to the levy. The municipal county may allocate levy authority to any
   political subdivision or    entity subject